EXTENDING THE AUTHORITY OF THE PRESIDENT'S
COMMITTEEON EQUAL EMPLOYMENT OPPORTUNITY

WHEREAS it
is the policy of the United States Government to encourage by affirmative action
the elimination of discrimination because of race, creed, color, or national
origin in employment on work involving Federal financial assistance, to the end
that employment opportunities created by Federal funds shall be equally
available to all qualified persons; and

WHEREAS
Executive Order No. 10925 of March 6, 1961, 26 F.R. 1977, reaffirmed the policy
of requiring the inclusion of non-discrimination provisions in Government
contracts and established the President's Committee on Equal Employment
Opportunity to administer the program for obtaining adherence to and compliance
with such provisions; and

WHEREAS
construction under programs of Federal grants, loans, and other forms of
financial assistance to State and local governments and to private organizations
creates substantial employment opportunities; and

WHEREAS it
is deemed desirable and appropriate to extend the existing program for
nondiscrimination in employment in Government contracts established by Executive
Order No. 10925 to include certain contracts for construction financed with
assistance from the Federal Government; and

WHEREAS it
is also desirable to amend Executive Order No. 10925 in certain respects in
order to clarify the authority of the President's Committee on Equal Employment
Opportunity:

NOW,
THEREFORE, by virtue of the authority vested in me as President of the United
States by the Constitution and statutes of the United States, it is ordered as
follows:

SECTION 101.
Each executive department and agency which administers a program involving
Federal financial assistance shall, insofar as it may be consistent with law,
require as a condition for the approval of any grant, contract, loan, insurance
or guarantee there under which may involve a construction contract that the
applicant for Federal assistance undertake and agree to incorporate, or cause to
be incorporated, into all construction contracts paid for in whole or in part
with funds obtained from the Federal Government or borrowed on the Credit of the
Federal Government pursuant to such grant, contract, loan, insurance or
guarantee, or undertaken pursuant to any Federal program involving such grant,
contract, loan, insurance or guarantee, the provisions prescribed for Government
contracts by section 301 of Executive Order No. 10925 or such modification
thereof, preserving in substance the contractor's obligations thereunder, as may
be approved by the President's Committee on Equal Employment Opportunity (the
"Committee"), together with such additional provisions as the Committee deems
appropriate to establish and protect the interest of the United States in the
enforcement of these obligations. Each such applicant shall also undertake and
agree (i) to assist and cooperate actively with the administering department or
agency and the Committee in obtaining the compliance of contractors and
subcontractors with said contract provisions and with obtain and to furnish to
the administering department or agency and the rules, regulations, and relevant
orders of the Committee, (ii) to obtain and to furnish to the administering
agency and to the Committee such information as they may require for the
supervision of such compliance, (iii) to enforce the obligations of contractors
and subcontractors under such provisions, rules, regulations, and orders, (iv)
to carry out sanctions and penalties for violation of such obligations imposed
upon contractors and subcontractors by the Committee or the administering
department or agency pursuant to Part III, Subpart D, of Executive Order No.
10925, and (v) to refrain from entering into any contract subject to this order,
or extension or other modification of such a contract with a contractor debarred
from Government contracts under Part III, Subpart D, of Executive Order No.
10925.

SEC. 102.
(a) "Construction contract" as used herein means any contract for the
construction, rehabilitation, alteration, conversion, extension, or repair of
buildings, highways, or other improvements to real property.

(b) The
provisions of Part III of Executive Order No. 10925 shall apply to such
construction contracts, and for purposes of such application the administering
department or agency shall be considered the contracting agency referred to
therein.

(c) The term
"applicant" as used herein means an applicant for Federal assistance or, as
determined by agency regulation, other program participant, with respect to whom
an application for any grant, contract, loan, insurance or guarantee is not
finally acted upon prior to the effective date of this part, and it includes
such an applicant after he becomes a recipient of such Federal
assistance.

SEC. 103.
(a) Each administering department and agency shall be primarily responsible for
obtaining the compliance of such applicants with their undertakings hereunder
and shall comply with the rules of the Committee in the discharge of this
responsibility. Each administering department and agency is directed to
cooperate with the Committee, and to furnish the Committee such information and
assistance as it may require in the performance of its functions under this
order.

(b) In the
event an applicant fails and refuses to comply with his undertakings, the
administering department or agency may, and upon the recommendation of the
Committee, shall take any or all of the following actions:

(1) cancel,
terminate, or suspend in whole or in part the agreement or contract with such
applicant with respect to which the failure and refusal occurred;

(2) refrain
from extending any further assistance under any of its programs subject to this
order until satisfactory assurance of future compliance has been received from
such applicant;

(3) refer
the case to the Department of Justice for appropriate legal
proceedings.

(c) No
action shall be taken with respect to an applicant pursuant to paragraph (1) or
(2)of subsection (b) without notice and hearing before the administering
department or agency or the Committee, in accordance with the rules and
regulations of the Committee.

SEC. 104.
The Committee may, by rule, regulation, or order, exempt all or part of any
program of an administering agency from the requirements of this order when it
deems that special circumstances in the national interest so require.

SEC. 105.
The Committee shall adopt such rules and regulations and issue such orders as it
deems necessary and appropriate to achieve the purposes of this
order.

PART II-- AMENDMENTS TO
EXECUTIVE ORDER NO. 10925

SECTION201. Section 301 of Executive Order No. 10925 of March 6, 1961, is amended
to read:

"SECTION
301. Except in contracts exempted in accordance with section 303 of this order,
all Government contracting agencies shall include in every Government contract
hereafter entered into the following provisions:

'During the
performance of this contract, the contractor agrees as follows:

‘(1) The
contractor will not discriminate against any employee or applicant for
employment because of race, creed, color, or national origin. The contractor
will take affirmative action to ensure that applicants are employed, and that
employees are treated during employment, without regard to their race, creed,
color, or national origin.Such action shall include, but not be limited, to
the following: employment, upgrading, demotion or transfer; recruitment or
recruitment advertising; layoff or termination; rates of pay or other forms of
compensation; and selection for training, including apprenticeship. The
contractor agrees to post in conspicuous places, available to employee and
applicants for employment, notices to be provided by the contracting officer
setting forth the provisions of this non-discrimination clause.

'(2) The
contractor will, in all solicitations or advertisements for employees placed by
or on behalf of the contractor, state that all qualified applicants will receive
consideration for employment without regard to race, creed, color, or national
origin.

'(3) The
contractor will send to each labor union or representative of workers with which
he has a collective bargaining agreement or other contract or understanding, a
notice, to be provided by the agency contracting officer, advising the said
labor union or workers' representative of the contractor's commitments under
this section, and shall post copies of the notice in conspicuous places
available to employees and applicants for employment.

'(4) The
contractor will comply with all provisions of Executive Order No. 10925 of March
6, 1961, as amended, and of the rules, regulations, and relevant orders of the
President's Committee on Equal Employment Opportunity created
thereby.

'(5) The
contractor will furnish all information and reports required by Executive Order
No. 10925 of March 6, 1961, as amended, and by the rules, regulations, and
orders of the said Committee, or pursuant thereto, and will permit access to his
books, records, and accounts by the contracting agency and the Committee for
purposes of investigation to ascertain compliance with such rules, regulations,
and orders.

'(6) In the
event of the contractor's noncompliance with the non-discrimination clauses of
this contract or with any of the said rules, regulations, or orders, this
contract may be canceled, terminated, or suspended in whole or in part and the
contractor may be declared ineligible for further Government contracts in
accordance with procedures authorized in Executive Order No. 10925 of March 6,
1961, as amended, and such other sanctions may be imposed and remedies invoked
as provided in the said Executive Order or by rule, regulation, or order of the
President's Committee on Equal Employment Opportunity, or as otherwise provided
by law.

'(7) The
contractor will include the provisions of paragraphs (1) through (7) in every
subcontract or purchase order unless exempted by rules, regulations, or orders
of the President's Committee on Equal Employment Opportunity issued pursuant to
section 303 of Executive Order No. 10925 of March 6, 1961, as amended, so that
such provisions will be binding upon each subcontractor or vendor. The
contractor will take such action with respect to any subcontract or purchase
order as the contracting agency may direct as a means of enforcing such
provisions, including sanctions for noncompliance: Provided, however, that in
the event the contractor becomes involved in, or is threatened with, litigation
with a subcontractor or vendor as a result of such direction by the contracting
agency, the contractor may request the United States to enter into such
litigation to protect the interests of the United States.'"

SEC. 202.
Section 303 of Executive Order No. 10925 is amended to read:

"The
Committee may, when it deems that special circumstances in the national interest
so require, exempt a contracting agency from the requirement of including any or
all of the provisions of section 301 of this order in any specific contract,
subcontract or purchase order. The Committee may, by rule or regulation, also
exempt certain classes of contracts, subcontracts or purchase orders (a) where
work is to be or has been performed outside the United States and no recruitment
of workers within the limits of the United States is involved; (b) for standard
commercial supplies or raw materials; (c) involving less than specified amounts
of money or specified numbers of workers; or (d) to the extent that they involve
subcontracts below a specified tier. The Committee may also provide, by rule,
regulation, or order, for the exemption of facilities of a contractor which are
in all respects separate and distinct from activities of the contractor related
to the performance of the contract, provided that such an exemption will not
interfere with or impede the effectuation of the purposes of this order and
provided that in the absence of such an exemption all such facilities shall be
covered by the provisions of this order. "

PART
III--MISCELLANEOUS

SECTION 301.
The Secretary of Health, Education, and Welfare and the Administrator of the
Housing and Home Finance Agency are designated members of the Committee. Each
such member may designate an alternate to represent him in his
absence.

SEC. 302.
Section 401 of Executive Order No. 10925 shall apply to the administering
departments and agencies subject to this order.

SEC. 303.
Part I of this order shall become effective thirty days after the execution of
this order. Parts II and III shall be effective immediately.